Nasdaq-listed video game publisher Activision Blizzard has taken out a floor in Hickory’s new Market Lane office in South Melbourne.
The producer of popular games Call of Duty and Crash Bandicoot is scaling up from the 100 square metres it started with on St Kilda Road last year and leasing 1433 sq m at 68 Clarke Street.
Activision Blizzard is expected to bring more than 100 people to the new Melbourne studio from Japan, Los Angeles and the UK.
The software development space on level three will be fitted out early next year with staff moving into the new studio in April.
They will be neighbours to Hickory which made the move in June and occupies level five.
Colliers International agent Travis Myerscough negotiated the five-year deal. There are 1.5 floors or around 3000 sq m remaining in the five-level office building, developed and built by Hickory, with rents quoted around the mid-to-high $500 per sq m mark.
Chase Underwriting has recently taken out 1000 sq m on level two and Luxury Escapes, a luxury package travel website leased level four – 1590 sq m – last year.
The Chapel Street branch of the Commonwealth Bank has changed hands for just over $7.5 million, on a record tight yield of 3.3 per cent.
Records show hospo entrepreneurs George and Heidi Koumantatakis had owned the property and its neighbour, leased by Priceline, for over 20 years.
Emmetts boss Charles Emmett, who struck the deal, said he fielded interest in both properties from parties in China, Hong Kong, Taiwan, South Africa and across Australia.
The buyer is a local, as yet undisclosed, investor.
Another Commonwealth Bank branch, in Ivanhoe, has also sold. Records show Mantello Investments snapped up the 125-127 Upper Heidelberg Road branch for $5.1 million, on a yield of 3.44 per cent.
The 350 sq m double-storey shop went to market for the first time in more than 50 years.
CBA has a seven-year lease plus options on the 230 sq m ground floor retail space which it renovated three years ago after moving from across the road.
The shop is zoned Commercial 1 and is on a large 755 sq m site with rear access to the Ivanhoe Plaza car park.
Fitzroys agents Chris Kombi and Chris James negotiated the deal. Earlier in the year, they sold the Burke Road CBA branch for $12.06 million on a 3.5 per cent yield.
The Burke Road ANZ fetched $16 million on a yield of 4.7 per cent and the NAB on Church Street in Brighton sold 16 months ago for $6.1 reflecting a yield of 3.52 per cent.
Gross Waddell agents Andrew Greenway and Michael Gross sold an ANZ branch at 111-115 Main Street Croydon at auction on Wednesday for $2.9 million – a yield of 4.31 per cent.
Despite bank’s continuing to shut down branches on suburban shopping strips, investors are attracted to the branches on the major strips, which also hold potential for capital growth.
Amid stage four restrictions, sourcing platform Sourci signed up for space in Bayley Stuart Capital’s 600 Church Street in Cremorne.
Sourci is moving out of South Yarra for the high-tech precinct dominated by Seek, Tesla, Uber and the REA Group.
Domain and Hoyts are already in the building which has plenty of natural light and views across to the CBD.
Sourci founders Ellie Vaisman and Giovanni Pino said the new building was the first they had found that perfectly suited their workplace culture.
“After looking at dozens of properties across the city’s fringe, we knew we had found the one as soon as we got to 600 Church Street,” Mr. Vaisman said.
Colliers International agents James McMahon, Ash Dean and John Howell struck the deal.
Bayley Stuart paid $50 million for the building two years ago in an innovative fund-through deal with developer ICON but took on the risk of leasing the space.
One of the more surprising property stories during 2021 has been the 10 deals done in the completely vacant Illoura Plaza at 424 St Kilda Road.
The six level 12,659 sq m building had been earmarked for residential conversion by Woodlink but after the resi market turned sour it sold last year to the Mars family for more than $70 million.
It sits on a 4645 sq m parcel of land with three street frontages and sold with a permit for 18 levels and a $360 million Bates Smart design for apartments and a hotel.
There’s plenty of room to spare. This year’s leasing deals – to Alyacare, Pegasus Group, CF Capital, Xtrade, Verge Legal, RY&Co, Arrow Construction and Powerpal – take up 1800 sq m of space so there’s almost 10,000 sq m left to fill.
Colliers agents Matt Cosgrave, Chris Meehan and James McMahon with Lemon Baxter’s Jay Pavey, Lachlan Fitzpatrick and Sophie Amerena did the deals.
Rents are understood to be between $375 and just under $500 a sq m gross.
Mr Pavey said a lot of businesses were keen to get out of the CBD and closer to the parks and new Anzac station.
Inspired by the Andrews Government’s promised $5.3 billion housing program, social housing groups are actively hunting for development sites.
It’s believed Unison Community Housing is the buyer who unconditionally snapped up 345-349 Bell Street, Preston, a 573 sq m development site located between High Street and the new Bell railway station.
The property, a two-level office building, came with a permit for a six-level 24-unit mixed use project.
Gross Waddell agents Andrew Greenway and Danny Clark struck the deal but declined to comment on the buyer.
It is understood that various groups are putting options on suitable sites around town on the condition they get approval under the new scheme which closes before Christmas.
Burgess Rawson is finishing 2020 off with a bang, auctioning nearly $150 million worth of properties next week on December 7 and 8.
The huge 45-property portfolio auction includes a raft of investor favourites: 7-Eleven, Starbucks, Viva Energy servos, Red Roosters and the perennially popular, Dan Murphy’s.
Burgess Rawson agent Raoul Holderhead said “This is a true blue-chip portfolio including well known brand tenants, new constructions and long-term leases.
Price expectations range from $500,000 to $11 million.
That’s all folks
This is the final Capital Gain for 2020, a strange and difficult year for everyone, including the commercial property sector. We wish you the best of health over the summer and will return at the end of January. Here’s to a prosperous 2021!
Source: Thanks smh.com